This agenda item was tabled until the next meeting.

Mr. Yezukevich stated that the FY24 revised budget will continue to be reviewed in January and February in light of enrollment challenges.

Mr. Yezukevich stated that the biggest part of the discussion of the FY25 budget is enrollment and the decisions to be made by management in light of declining numbers and what is best for the FRCS community as a whole.

Ms. Calvert noted that the budget calendar meetings with the senior team will present budget details.

Mr. Yezukevich began the discussion on paying down the Eastern Bank loan. With a balance of $3.2, currently payable over five-seven years.

Consideration may also be given to paying off some part during FY24 to reduce the debt service-related ratio and increase funds for operations.

Discussion ensued. Mr. Martin stated that he is not opposed to the idea but suggested waiting until the end of the year to make a decision based on a careful review of the financials and projects to assess impact on the budget going forward. Mr. Yezukevich noted that looking at projections for FY25 FY26 and FY27 and the impact of enrollment on the budget would also provide a reasonable picture of assessment.  

Mr. Michelot reported that the design contract was awarded to Studio Umbrio, the firm that had completed the middle school roof. The contract includes architectural and structural design and review of mechanical, electrical and plumbing utilizing cost estimator and asbestos abatement at a fee structure of $118,100.

The penthouse on the top of the elementary roof houses the HVAC system. The project team will make an assessment as to the lifespan of the system and make a recommendation on replacing that structure at the same time as the main roof. 

Discussion ensued. Mr. Michelot noted that an economy of scale is realized if the HVAC system is replaced at the same time as the main roof, as replacing it at a later time may cause damage to the newly installed roof. Another advantage is that the current contractor would take more care in the replacement of the penthouse equipment as it was part of its oversight of the entire project. 

Additionally, replacement of the HVAC system on the high school roof could be coordinated with the elementary school HVAC. The estimate for both systems is $.5M each. The cost of the elementary school roof would be increased from $3.2M to $4.5M. Mr. Michelot noted that, because of continuing supply chain issues, the HVAC system be ordered in January. 

Mr. Michelot explained the RFQ process that resulted in the selection of Studio Umbrio as the best firm for the project and its availability to start construction at the conclusion of the school year. Price negotiations will now be entered into, but it is expected that the price estimate will come in slightly less than the middle school roof by $1K.

Meetings will be held first Friday of every week at 8:00 AM. Agenda items will include FY24 and FY25 capital projects and elementary school roof as well as approval of minutes.

Ms. Calvert and Mr. Martin will confer on the subject of increasing return on investments.